Goldman Sachs
GS
$1034.51
-0.49%
Goldman Sachs Group Inc. is a leading global investment bank, founded in 1869, providing a wide range of financial services including investment banking, global markets trading, asset management, wealth management, and lending. As a storied institution, it has been the top M&A advisor by revenue for 20 years and has strategically expanded into more stable fee-based businesses, with asset and wealth management now comprising roughly 30% of post-provision revenue. The current investor narrative centers on the firm's robust earnings growth, driven by strong performance in Global Markets and Investment Management, alongside concerns about geopolitical tensions and market volatility that have recently pressured the stock. Additionally, the firm's significant free cash flow outflows and high leverage are points of debate among investors.…
GS
Goldman Sachs
$1034.51
Related headlines
Investment Opinion: Should I buy GS Today?
We rate GS a Buy, anchored by strong earnings growth and attractive valuation. The consensus is hold, but the average target of $1,141.65 offers 10.6% upside, and the PEG ratio of 0.65x indicates undervaluation relative to growth.
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GS 12-Month Price Forecast
The AI model assesses GS as bullish given its strong earnings growth, attractive valuation, and positive analyst sentiment. However, confidence is medium due to high leverage and market volatility. The model would upgrade to high confidence if GS maintains EPS growth above 20% and reduces leverage, while a downgrade would occur if revenue growth falls below 10% or if the stock breaks below $900.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Goldman Sachs's 12-month outlook, with a consensus price target around $1141.65 and implied upside of +10.4% versus the current price.
Average Target
$1141.65
0 analysts
Implied Upside
+10.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$730 - $1325
Analyst target range
The wide target spread suggests that analysts have divergent views on Goldman Sachs' prospects. The high target of $1,325 assumes continued strong earnings growth and multiple expansion, while the low target of $730 prices in potential margin compression or a market downturn. Recent ratings from major firms like JP Morgan, Barclays, and Wells Fargo have been neutral to overweight, with no major downgrades, indicating a stable but cautious outlook. The consensus 'hold' rating reflects a balanced view, with the stock fairly valued at current levels.
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Bulls vs Bears: GS Investment Factors
Goldman Sachs presents a compelling bull case with exceptional earnings growth, a low PEG ratio, and strong revenue momentum, but bears point to high leverage, negative free cash flow, and a premium valuation. Currently, the bull case appears stronger given the robust fundamental performance and attractive forward PE, yet the high debt and market sensitivity introduce substantial risk. The central tension is whether GS can sustain its earnings growth trajectory—if it does, the stock is undervalued; if not, the leverage and valuation could lead to sharp downside.
Bullish
- Exceptional earnings growth: Q2 2026 EPS surged to $21.27, up 92% YoY from $11.07, with net income of $6.63B. This dramatic acceleration underscores the firm's operating leverage and strong market conditions.
- Undervalued on PEG basis: With a PEG ratio of 0.65x, the stock trades at a discount to its growth rate. The forward PE of 13.95x is well below the trailing 16.92x, implying the market expects continued earnings expansion.
- Strong revenue momentum: Q2 2026 revenue grew 22.9% YoY to $38.43B, driven by Global Markets ($20.63B) and Investment Management ($9.22B). This broad-based strength highlights diversified growth engines.
- Outperforming the market: GS returned 42.5% over the past year versus the S&P 500's 21.5%, with relative strength of 21.0%. The stock's uptrend and momentum suggest sustained investor confidence.
Bearish
- High leverage and debt: Debt-to-equity stands at 4.88x, reflecting the firm's heavy reliance on borrowed funds. This amplifies risk during market downturns and could pressure earnings if credit conditions tighten.
- Negative free cash flow: Trailing twelve-month free cash flow is -$41.9B, indicating significant cash outflows. This raises concerns about liquidity and the sustainability of dividends and buybacks.
- Valuation premium to book: The price-to-book ratio of 2.20x is elevated relative to historical norms for banks, suggesting the market is pricing in high growth expectations that may be hard to meet.
- Geopolitical and market risks: Recent news highlights geopolitical tensions and Fed uncertainty, which have caused market sell-offs. GS's beta of 1.29 means it is more sensitive to market swings, amplifying downside risk.
GS Technical Analysis
Goldman Sachs is in a strong uptrend over the past year, with the stock up 42.48% over the last 12 months, significantly outperforming the S&P 500's 21.46% gain. The current price of $1,032.58 sits at 89.5% of its 52-week range (between $705.55 and $1,153.99), indicating the stock is trading near its highs, reflecting robust momentum but also potential overextension. The 52-week high of $1,153.99 was reached on July 14, 2026, and the stock has since pulled back, but it remains well above its 52-week low of $705.55, suggesting a strong long-term trend.
Beta
1.29
1.29x market volatility
Max Drawdown
-19.8%
Largest decline past year
52-Week Range
$706-$1154
Price range past year
Annual Return
+43.4%
Cumulative gain past year
| Period | GS Return | S&P 500 |
|---|---|---|
| 1m | -2.0% | +2.4% |
| 3m | +9.4% | +4.7% |
| 6m | +9.5% | +11.7% |
| 1y | +43.4% | +21.3% |
| ytd | +13.1% | +13.4% |
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GS Fundamental Analysis
Goldman Sachs reported Q2 2026 revenue of $38.43 billion, a 22.9% year-over-year increase, driven by strong performance in Global Markets ($20.63 billion) and Investment Management ($9.22 billion). The company's net income for the quarter was $6.63 billion, with EPS of $21.27, up from $11.07 in Q2 2025, reflecting a significant acceleration in profitability. Revenue growth has been robust across recent quarters, with Q1 2026 revenue of $17.23 billion and Q4 2025 revenue of $30.13 billion, indicating a strong upward trajectory.
Quarterly Revenue
$38.4B
2026-06
Revenue YoY Growth
+22.9%
YoY Comparison
Gross Margin
52.7%
Latest Quarter
Free Cash Flow
$-41.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GS Overvalued?
Given Goldman Sachs' positive net income, the PE ratio is the primary valuation metric. The trailing PE is 16.92x, while the forward PE is 13.95x, implying the market expects earnings growth of about 21% over the next year. This gap suggests that the market is pricing in continued strong earnings growth, which is supported by the company's recent performance. The PEG ratio of 0.65x indicates that the stock is undervalued relative to its growth rate, making it an attractive value proposition.
PE
16.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 6x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
30.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant: GS carries a debt-to-equity ratio of 4.88x, indicating heavy leverage that could amplify losses in a downturn. The firm's negative free cash flow of -$41.9B TTM raises liquidity concerns, potentially constraining capital returns or forcing asset sales. Additionally, earnings are volatile, with quarterly EPS swinging from $11.07 to $21.27, reflecting sensitivity to market conditions and trading revenues.
FAQ
The key risks are financial, market, and regulatory. Financially, GS has high leverage (D/E 4.88x) and negative free cash flow (-$41.9B), which could strain liquidity. Market risks include its high beta of 1.29, making it sensitive to downturns, and geopolitical tensions that could disrupt trading. Regulatory risks include potential capital requirements or restrictions on trading activities. The most severe risk is a market crash, which could push the stock down 30% or more, as seen in the 52-week low of $705.55.
The 12-month forecast is moderately bullish. The base case (50% probability) targets $1,000-$1,150, aligning with the analyst average of $1,141.65. The bull case (30% probability) could see $1,150-$1,325 if earnings continue to surge. The bear case (20% probability) could drop to $730-$900 if a market downturn occurs. Overall, the most likely scenario is moderate growth, with the stock trading around $1,100. Key assumptions include stable markets and continued revenue growth.
GS appears undervalued relative to its growth prospects. The forward PE of 13.95x is below the trailing 16.92x, implying expected earnings growth of about 21%. The PEG ratio of 0.65x is well below 1, suggesting the stock is cheap for its growth rate. Compared to the broader market, GS's PE is lower than the S&P 500's average, and its price-to-book of 2.20x is reasonable for a high-ROE bank. The market is pricing in continued strong earnings, but if growth disappoints, the valuation could be seen as rich.
GS is a good buy for investors with a higher risk tolerance, given its strong earnings growth and attractive valuation. The stock trades at a forward PE of 13.95x, below its trailing PE of 16.92x, and has a PEG of 0.65x, indicating undervaluation. Analysts see 10.6% upside to the average target of $1,141.65. However, the high debt-to-equity ratio of 4.88x and negative free cash flow of -$41.9B introduce significant risk. If you believe GS can sustain its growth, it's a compelling buy; otherwise, it may be best to wait for a pullback.
GS is better suited for long-term investment, given its cyclical nature and high volatility (beta 1.29). Short-term trading is possible but risky due to market swings. Over the long term, GS's diversified business and strong market position can drive earnings growth, making it a good hold for 3-5 years. The stock has returned 42.5% over the past year, but such gains are not guaranteed. For income investors, the dividend yield of 1.92% is modest, so capital appreciation is the primary driver.